What is it?
Tracking and managing the tangible assets of a business, like machinery, buildings, and equipment.
Fixed Asset Management
How does it work?
Fixed Asset Management refers to the process of tracking, managing, and accounting for the tangible, long-term assets of a business. These assets could include items like buildings, land, machinery, and equipment. They are considered ‘fixed’ because they are not easily converted into cash and are typically used over a long period of time to help generate income for the business.
When is it useful?
In a practical business context, fixed asset management involves maintaining a detailed inventory of a company’s fixed assets, including information about their purchase date, cost, depreciation, maintenance schedules, and disposal. This helps the company to accurately calculate their value for financial reporting, tax purposes, and strategic planning. It also aids in preventing asset loss and ensuring that these assets are maintained properly for long-term use.
Real-World Impact
A real-world example of fixed asset management could be a manufacturing company that maintains an inventory of its machinery and equipment. Regular maintenance checks are scheduled, and their cost and depreciation are tracked over time. This helps the company to accurately determine the current value of these assets, plan for future purchases or replacements, and ensure that they are being used as efficiently as possible.
How to Get Started
Understanding fixed asset management is beneficial for businesses that want to maximize the value of their tangible assets and maintain accurate financial records. Empress’s suite of tools and services can support this by providing features that help businesses to track and manage their fixed assets effectively, ensuring that they are utilized efficiently and maintained properly.
Get the Empress Edge
Effective fixed asset management not only helps a business to maintain accurate financial and tax records, but it can also contribute to long-term business stability and growth. By keeping track of the value and maintenance needs of their fixed assets, businesses can plan strategically for future investments and ensure that their assets are being used to their full potential.